Correlation Between Acconeer and Fingerprint Cards

Can any of the company-specific risk be diversified away by investing in both Acconeer and Fingerprint Cards at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Acconeer and Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acconeer AB and Fingerprint Cards AB, you can compare the effects of market volatilities on Acconeer and Fingerprint Cards and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Acconeer with a short position of Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acconeer and Fingerprint Cards.

Diversification Opportunities for Acconeer and Fingerprint Cards

0.69

Correlation Coefficient

Acconeer  Fingerprint Cards

Poor diversification

The 3 months correlation between Acconeer and Fingerprint is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards and Acconeer is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Acconeer AB are associated (or correlated) with Fingerprint Cards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fingerprint Cards has no effect on the direction of Acconeer i.e., Acconeer and Fingerprint Cards go up and down completely randomly.

Pair Corralation between Acconeer and Fingerprint Cards

Assuming the 90 days trading horizon Acconeer AB is expected to generate 0.23 times more return on investment than Fingerprint Cards. However, Acconeer AB is 4.32 times less risky than Fingerprint Cards. It trades about -0.23 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.08 per unit of risk. If you would invest  700.00  in Acconeer AB on September 27, 2024 and sell it today you would lose (230.00) from holding Acconeer AB or give up 32.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Acconeer AB  vs.  Fingerprint Cards AB

Acconeer AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acconeer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Fingerprint Cards

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fingerprint Cards AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Acconeer and Fingerprint Cards

The main advantage of trading using opposite Acconeer and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acconeer position performs unexpectedly, Fingerprint Cards can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fingerprint Cards will offset losses from the drop in Fingerprint Cards' long position.

The idea behind Acconeer AB and Fingerprint Cards AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.